Too Much Credit Card Debt Is Harming Your Odds Of Acquiring Business Loans

Too Much Credit Card Debt Is Harming Your Odds Of Acquiring Business Loans by: www.newhorizon.org

Recently we have been identifying that many of the equipment lease application that financial institutions declined, are usually rejected because of our clients have to much revolving debt. In case you are using a lot more than 30% of your available credit, then you are using a lot!

Your credit rating is directly affected by your credit utilization.

So if you have already got a couple of unfavorable marks on your credit profile AND you have maintain a high revolving balance, your score is being made even lower by your credit card use. If you pay down your credit cards you will notice a sudden credit score improvement.

How Credit Card Usage Influences Your Credit Rating An entrepreneur using only 20-30% of their available credit without additional imperfections on their credit, will often score close to a 715 - 690, but if that very same business proprietor was using 50% of their available credit without other blemishes, they will most likely score around a 640!

Big decrease and yes, the interest rates given to them will be greater than when their utilization was between 20-30%.

Now let’s say the businessman is utilizing 70 -80% of their available credit. With no other damage they will will often have a fico score under 610. Yes, technically in the bad credit range. This is when you begin seeing high rates of interest and loan rejections. At this time, we can just approach our bad credit loan providers so that you can get equipment leasing for them!

All due to excessive revolving debt!

What You Can Do Prior To Applying For An Equipment Lease Prior to applying for any type of loans, business or consumer. You need to pull your credit report to find mistakes. Correct those mistakes and ensure the right details are being shown on your credit report.

FOR MORE INFORMATION READ http://www.newhorizon.org/credit-info/how-excessive-credit-card-debt-is-killing-your-chances-of-obtaining-financing/

LOOKING FOR EQUIPMENT LEASE FOR BAD CREDIT http://www.newhorizon.org/NHBS/badcreditleases.htm